The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value
The main purpose of this paper is to focus on the awareness of SMEs of the influence of design on their business as well as on the performance of the company in the context of increased competitiveness. What economic indicators do design influence? Can they facilitate direct profit increases or just...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Tomas Bata University in Zlín
2019-12-01
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| Series: | Journal of Competitiveness |
| Subjects: | |
| Online Access: | https://www.cjournal.cz/files/347.pdf |
| _version_ | 1817982158255423488 |
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| author | Jan Kramolis Eva Svirakova |
| author_facet | Jan Kramolis Eva Svirakova |
| author_sort | Jan Kramolis |
| collection | DOAJ |
| description | The main purpose of this paper is to focus on the awareness of SMEs of the influence of design on their business as well as on the performance of the company in the context of increased competitiveness. What economic indicators do design influence? Can they facilitate direct profit increases or just sales increases (turnover)? Can design factors affect long-term goals such as market share or brand value growth? The research approach is based on theoretical sources as well as empirical studies conducted on design management and its relationship to a company’s profits. Two research questions verifying the thesis were statistically tested at a significance level of 0.05. A statistical search was also undertaken seeking to determine a dependence between how much companies expect to increase profits as well as brand value (achieving a competitive advantage) based on design elements. The practical implications of the research were shown to confirm the thesis and unequivocally support the significant impact of design on the economic results of SMEs. This effect was shown especially in increased brand value, but also by profit as well as sales growth, all factors which are of high importance to businesses. This, however, is not the primary focus of the article. The originality of this contribution lies primarily in the freshness of the data received, i.e. in the context of the current situation in the economy. It is commonly believed among practitioners of Product Life Cycle Theory that it is optimal for companies to invest in innovation (e. g. design) in the third phase, thus it is crucial that firms are (made) aware that design factors affect their economic goals, and to determine to what extent companies accept the reality of these effects. To meet these goals, we also considered profit maximization from the point of view of microeconomic theory, which is undoubtedly reflected in the formation of corporate goals, e.g. as measured by how design influences the four economic indicators of a company. |
| first_indexed | 2024-04-13T23:17:06Z |
| format | Article |
| id | doaj.art-1961df2a65d246d3b9fd4b41110c3e3e |
| institution | Directory Open Access Journal |
| issn | 1804-171X 1804-1728 |
| language | English |
| last_indexed | 2024-04-13T23:17:06Z |
| publishDate | 2019-12-01 |
| publisher | Tomas Bata University in Zlín |
| record_format | Article |
| series | Journal of Competitiveness |
| spelling | doaj.art-1961df2a65d246d3b9fd4b41110c3e3e2022-12-22T02:25:22ZengTomas Bata University in ZlínJournal of Competitiveness1804-171X1804-17282019-12-011148910210.7441/joc.2019.04.06The Influence of Design on Companies’ Increase in Income, Market Share or Brand ValueJan Kramolis0Eva Svirakova1Tomas Bata University in ZlínTomas Bata University in ZlínThe main purpose of this paper is to focus on the awareness of SMEs of the influence of design on their business as well as on the performance of the company in the context of increased competitiveness. What economic indicators do design influence? Can they facilitate direct profit increases or just sales increases (turnover)? Can design factors affect long-term goals such as market share or brand value growth? The research approach is based on theoretical sources as well as empirical studies conducted on design management and its relationship to a company’s profits. Two research questions verifying the thesis were statistically tested at a significance level of 0.05. A statistical search was also undertaken seeking to determine a dependence between how much companies expect to increase profits as well as brand value (achieving a competitive advantage) based on design elements. The practical implications of the research were shown to confirm the thesis and unequivocally support the significant impact of design on the economic results of SMEs. This effect was shown especially in increased brand value, but also by profit as well as sales growth, all factors which are of high importance to businesses. This, however, is not the primary focus of the article. The originality of this contribution lies primarily in the freshness of the data received, i.e. in the context of the current situation in the economy. It is commonly believed among practitioners of Product Life Cycle Theory that it is optimal for companies to invest in innovation (e. g. design) in the third phase, thus it is crucial that firms are (made) aware that design factors affect their economic goals, and to determine to what extent companies accept the reality of these effects. To meet these goals, we also considered profit maximization from the point of view of microeconomic theory, which is undoubtedly reflected in the formation of corporate goals, e.g. as measured by how design influences the four economic indicators of a company.https://www.cjournal.cz/files/347.pdfdesigndesign managementmarket shareprofitbrand valuesalesdesign and competitiveness |
| spellingShingle | Jan Kramolis Eva Svirakova The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value Journal of Competitiveness design design management market share profit brand value sales design and competitiveness |
| title | The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value |
| title_full | The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value |
| title_fullStr | The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value |
| title_full_unstemmed | The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value |
| title_short | The Influence of Design on Companies’ Increase in Income, Market Share or Brand Value |
| title_sort | influence of design on companies increase in income market share or brand value |
| topic | design design management market share profit brand value sales design and competitiveness |
| url | https://www.cjournal.cz/files/347.pdf |
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